EU Turns Deaf Ear on Germany Demand for Strict Fiscal Rules

Bloc to give members more leeway, Dombrovkis tells Bloomberg
IMF calls on Europe for more ambitious fiscal consolidation

WATCH: Valdis Dombrovskis, the Executive Vice-President of the European Commission says the EU is constructively engaged with the US on the Inflation Reduction Act. Source: Bloomberg

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By Jorge Valero

April 14, 2023 at 9:44 PM UTC

Updated on

April 14, 2023 at 10:21 PM UTC

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The European Union is determined to scrap the draconian fiscal rules of the past blamed for choking economies in the aftermath of the previous financial crisis despite Germany’s call for strict limits to reduce public expenditure.

“Clearly we are not getting back to the 1/20th rule” that forced member states to implement severe adjustments to their public debt levels, European Commission Valdis Dombrovskis said in an interview Friday the sidelines of the spring meetings of the International Monetary Fund in Washington.